News – The Negotiatorhttps://thenegotiator.co.uk
The essential site for residential agentsFri, 24 May 2019 10:01:30 +0000en-GB
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1 Jersey girls go above and beyond to welcome buyershttps://thenegotiator.co.uk/jersey-girls-go-above-and-beyond-to-welcome-buyers/
https://thenegotiator.co.uk/jersey-girls-go-above-and-beyond-to-welcome-buyers/#respondFri, 24 May 2019 13:49:34 +0000https://thenegotiator.co.uk/?p=54630Fine & Country Jersey offers a concierge service dedicated to helping individuals find their feet as soon as they touch down on the Channel Island.

Recognising that there is a lot that goes along with moving to a new home, not mention another part of the world, Fine & Country Jersey offers a concierge service dedicated to helping individuals find their feet as soon as they touch down on the Channel Island.

“We recognised the need for a concierge service for individuals from abroad who want to make their transition to Jersey as smooth as possible. We offer customers an exclusive, upmarket service that ensures that their move is as effortless as it can be,” says Rebecca Sokrati, Director at Fine & Country Jersey. “We collect customers from the airport upon their arrival, show them suitable properties, arrange tours of the private schools and other amenities. After the ‘island tour’ we deliver them safely back to their hotel or the airport.”

She adds that the concierge service does not end once the individual has moved. “After our client has moved to the island, we are still on hand to help and can put them in contact with our tried and tested list of the best Jersey has to offer. We also host events to introduce new people to like minded individuals or families who have moved to Jersey and help them build a community.”

“As an estate agent marketing high-end property, we want to ensure that every effort is made to provide the ultimate estate agency customer experience, far beyond what is expected. Where we can we aim to alleviate our customers stress, helping them to adjust to the island and feel at home as soon as possible.”

The time it takes landlords and letting agents to evict a tenant through the Section 21 notice eviction process is getting longer, official figures show, throwing the government’s plan to ban ‘no fault’ evictions into disarray.

Figures just released this week by the Ministry of Justice reveal that it took on average 17.3 weeks to make a claim to the courts and get access to a property during the first three months of 2019, a week longer than a year ago.

The government is part way through consulting on plans to ban Section 21 ‘no fault’ evictions and instead force landlords and letting agents to rely solely on the longer and more complicated Section 8 notice system.

This, the Residential Landlords Association has argued, is likely to lead to both additional costs and time taken to evict tenants.

Commenting last month on the news of the proposed changes to the eviction process, housing secretary James Brokenshire (left) said: “By abolishing these kinds of evictions, every single person living in the private rented sector will be empowered to make the right housing choice for themselves – not have it made for them,” he said.

But as The Negotiator reported earlier this week, the Residential Landlords Association has just completed a poll of 6,500 professionals in the industry about the proposed changes, warning that they would lead to nearly half of landlords exiting the private rental sector.

“With the demand for private rented housing showing no signs of slowing down it is vital that landlords are confident that they can quickly and easily get back their property in legitimate circumstances,” said its policy director David Smith.

]]>https://thenegotiator.co.uk/eviction-process-taking-longer-17-weeks/feed/0Referral fees must be revealed after June 1st, says ombudsmanhttps://thenegotiator.co.uk/codes-of-practice-tpo-referral-fees/
https://thenegotiator.co.uk/codes-of-practice-tpo-referral-fees/#respondFri, 24 May 2019 06:31:54 +0000https://thenegotiator.co.uk/?p=54878Member agents of TPO have been given the deadline in new revised Codes of Practice issued by ombudsman.

Ist June 2019 will go down in residential lettings history, as the Tenant Fees Act comes into force.

But they won’t be the only new rules being introduced. The Property Ombudsman (TPO) scheme’s updated Codes of Practice will also become effective. The revisions are substantial, and incorporate the Tenant Fees Act, Client Money Protection and GDPR requirements and most pressingly, a requirement to reveal referral fees.

TPO consulted with 44 different organisations and individuals during the review process including about referral fees. The Ministry of Housing, Communities and Local Government (MHCLG) and The National Trading Standards Estate Agency Team (NTSEAT) provided a technical review of the lettings and sales codes respectively.

Along with the Scottish Sales Codes, they were then scrutinised and approved by CTSI. The new Codes are available on TPO Codes page which will soon be revised to include a facility to put forward requests for future changes to the codes.

Katrine Sporle, the Ombudsman, said, “We have carried out the largest consultation yet on the codes and are extremely grateful to all of the parties who have contributed to the process. With CTSI’s approval, consumers and agents can be confident that the Codes reflect both market developments and the significant legislative changes that have occurred over the last 12 months.

“As the industry changes at such a rapid rate, it is necessary to release new versions of our Codes to help agents understand their responsibilities and reduce the potential for consumer detriment to occur. Given these extensive changes, we have taken the decision to double the number of agent workshops at our annual Conference and will focus delegates attention on pre and post fee ban and code change cases.”

Key revisions to the Sales Code include:

Leasehold, commonhold & managed freehold disclosure: Agents’ obligations to request and divulge information relating to leasehold have been widened. If material information on the tenure is not known, this should be made clear to the consumer at the outset of marketing.

Dual Fees: In relation to the potential risk to sellers of being charged two commission fees when they sell their property, transparency obligations have been updated and expanded together with a definition of effective introduction in the glossary.

The other key revisions to the Lettings Code include:

England Only: TPO Code of Practice for Residential Letting Agents is now an England only Code.

The current 2016 Lettings Code will continue to apply to Wales and Northern Ireland until such time as Welsh tenant fee legislation becomes effective.

Tenant Fees: The Code reflects changes imposed on agents by the Tenant Fee Act 2019, with new sections on holding deposits and the fees which are permissible under the Act.

Tenancy Deposit Replacement Products: A further update takes into account the emergence of tenancy deposit replacement products, putting the onus on agents to clearly explain the potential advantages and disadvantages of that product prior to tenants and landlords committing themselves.

Client Money Protection: The Code also reflects the requirement to belong to a CMP scheme and to display the CMP certificate in agents’ offices and on websites.

All other Codes including, Scottish Sales, Buying Companies, Buying Agents, Commercial and Business, have been updated in line with legislation and best practice obligations.

TPO will apply the new Codes of Practice when reviewing consumer complaints about events that have occurred after 1st June 2019 to ensure consistent advice, guidance and decision making is applied to both Agents and Consumers which raises standards and reduces consumer detriment.

TPO’s annual Conference is being held on 10th July at the National Conference Centre, Solihull.

]]>https://thenegotiator.co.uk/codes-of-practice-tpo-referral-fees/feed/0Agents who break competition rules to face huge fineshttps://thenegotiator.co.uk/estate-agent-cartels-cma-fines/
https://thenegotiator.co.uk/estate-agent-cartels-cma-fines/#respondFri, 24 May 2019 06:00:53 +0000https://thenegotiator.co.uk/?p=54875Competition watchedog the CMA says it plans to fine estate agents become involved in cartels as well as disqualify them as directors.

The Competition and Markets Authority (CMA) has revealed that it intends to introduce substantial fines for the directors of estate agencies who are involved in illegal cartels.

At the moment senior staff at companies can only either be prosecuted or be disqualified from being directors for up to 15 years via either Compulsory Disqualifications Orders or through voluntary undertakings if they are caught colluding in local fees cartels.

In reality, it is extremely hard to secure guilty verdicts for criminal cartel offences, as the CMA has found, and as in the recent Burnham estate agency fees scandal, instead it has been pursuing director disqualifications.

Personal liability

But the CMA has now submitted proposed reforms of the way competition is policed in the UK to underline greater personal liability and wants to introduce civil fines for individuals involved in breaches of competition law.

The proposals are at an early stage but the Government is expected to publish a Green Paper for consultation by the end of July.

Agents can be disqualified as directors if they contribute to the breach of competition law, had reasonable grounds to suspect a breach and took no steps to prevent it, or did not know but should have known that the company was involved in conduct that was in breach of competition law.

The now infamous Burnham-on-Sea case saw two directors of residential estate agents disqualified, for three years and three and a half respectively as a result of their companies having participated in a cartel to fix their minimum commission rates at 1.5%.

]]>https://thenegotiator.co.uk/estate-agent-cartels-cma-fines/feed/0Knight Frank reveals it uses Instagram as much as magazines for marketinghttps://thenegotiator.co.uk/knight-frank-reveals-it-uses-instagram-more-than-magazines-for-marketing/
https://thenegotiator.co.uk/knight-frank-reveals-it-uses-instagram-more-than-magazines-for-marketing/#respondFri, 24 May 2019 05:42:13 +0000https://thenegotiator.co.uk/?p=54870Growing dominance of social media for many estate agents is revealed by agency's comments.

Knight Frank has revealed that it now has a small army of agents who use Instagram as ‘part of they day job’ across its business to service the agency’s growing customer base of social-media obsessed Millennials.

The company has also said it’s aware that the strategy isn’t going down well with older, traditionally-minded agents, but that nevertheless ‘it works’.

Andrew Groocock (left), the company’s regional partner for the City and East London region, has revealed that Knight Frank is focussing on social market almost as much as glossy upmarket magazines, many of which he says have either gone bust or moved exclusively online particularly in central London.

“We’ve had to move with the times and make sure we are engaging with people across the mediums they want, social media being the most obvious,” he told a conference.

Groocock says the company’s Instagram strategy has been a significant success and that Danny Daggers, who works in his division’s super prime team, has over 25,000 followers on the platform.

“We recently sold a flat where someone saw it on Instagram and put an offer in within 24 hours. This is a key way of finding buyers for us, the high-quality photos that go up appeal to our younger clients and make them want to engage with us,” says Groocock.

Knight Frank says younger buyers no longer want to engage initially with its staff on the phone and instead prefer WhatsApp and Instagram, although the company says it is ramping up its use of other social media to market properties including on Twitter and LinkedIn, which it says are now ‘essential’ for its marketing effort.

]]>https://thenegotiator.co.uk/knight-frank-reveals-it-uses-instagram-more-than-magazines-for-marketing/feed/0Tenant sues Savills for £100,000 after falling off security gatehttps://thenegotiator.co.uk/savills-perez-hampstead/
https://thenegotiator.co.uk/savills-perez-hampstead/#respondThu, 23 May 2019 23:01:11 +0000https://thenegotiator.co.uk/?p=54762City worker claims agency should have given him keyfob to gain entry after gate security was switched on, but Savills denies responsibility.

Savills is being sued by a tenant for more than £100,000 after he fell off a security gate (pictured) at a property in North London.

49-year-old City financial sector worker Carlos Reguero Perez returned late at night with a takeaway to his rented flat in Hampstead only to find that a newly-installed security gate at his development had been activated.

Unable to gain entry because he did not have the required code or keys to enter, Perez attempted to climb over the gates but fell onto the concrete below and suffered spine and brain injuries.

He is now seeking compensation from Savills, which managed his property.

Perez, who works for one of the UK’s high-street banks, claims Savills had failed to give him the necessary codes or keyfob and that after trying to rouse other residents in the block, had no choice but to try and get over the gate.

‘Reckless disregard’

Savills’ lawyers said the company denies any responsibility for his injuries and that he acted in “reckless disregard for his own safety by climbing the gate”, local media reports.

The company also denies agreeing to provide Mr Perez Swith the codes or keyfob for the gate, which was installed by the management company that operates the site, and that it had “no role in the installation of the gates”.

It claims that Mr Perez should have arranged alternative accommodation with friends rather than try and climb the gate.

But Savills’ attempt to have the case thrown out prior to a full court hearing were unsuccessful and it will now proceed to a trial.

]]>https://thenegotiator.co.uk/savills-perez-hampstead/feed/0New homes coming in Powyshttps://thenegotiator.co.uk/new-homes-coming-in-powys/
https://thenegotiator.co.uk/new-homes-coming-in-powys/#respondThu, 23 May 2019 09:42:28 +0000https://thenegotiator.co.uk/?p=54800A highly desirable residential development opportunity has come to market in an idyllic village in Powys.

A highly desirable residential development opportunity has come to market in an idyllic village in Powys.

The site situated in Llanddewi currently comprises five newbuilt houses and has planning permission for a further 13 homes, with scope to increase to 18.

The 1.8 acre site, in the centre of the village with good access to the A485, is being marketed for sale by national property consultancy, Bruton Knowles. Llanddewi is an attractive village located five miles north of Llandrindod Wells.

With housing in demand across the Powys county, the site will be pivotal in bringing much-needed accommodation to a range of purchasers. Bruton Knowles has already seen interest from developers, who are keen to meet this growing demand.

Included in the sale are five partly built houses and the planning permission includes an additional 13 homes, of which three are affordable units.

Ian Mercer, Partner at Bruton Knowles, said, “With Powys requiring new housing for first-time buyers and families, this is an excellent opportunity.

“The site is in a wonderful location, at the heart of the thriving village of Llanddewi, in a beautiful location with good access to Llandrindod Wells. It is great for anyone looking for new development opportunities.”

The Property Ombudsman has reminded all agents to ensure they have the correct redress membership to cover the work they undertake, after a letting agent was issued with a £3,000 penalty by their Local Authority for not having redress membership to cover their Residential Leasehold Management work, despite being a member of The Property Ombudsman for Sales and Lettings.

The fine followed a complaint from a tenant at a residential block of flats, which the agent had managed for two years, when the Local Authority discovered that the agents’ membership of TPO covered it for Sales and Lettings, Commercial Sales and Lettings and some Property Management, but not for Residential Leasehold Management, which would have required further cover.

The authority took the view that the company was in breach of its legal obligations and issued a notice of intent.

The agent appealed to The First-tier Tribunal and they concluded that there was insufficient evidence that the agent’s membership of TPO, in connection with property management, was inadequate to meet their obligations under the Order.

The Local Authority then applied to the First-tier Tribunal for permission to appeal to the Upper Tribunal against the decision of the First-tier Tribunal in respect of the matter, which was refused.

The Local Authority then reviewed its application direct to the Upper Tribunal, which subsequently ruled there was ample evidence from which to determine the property management activities of the agent, and that it was a point of law that needed to be addressed and determined.

The judge said, “A company must be a member of a redress scheme for all works in which they are engaged, otherwise the whole process of a redress scheme is undermined”.

Katrine Sporle, TPO, said, “Local authorities have a duty to act where agents fail to register with an approved redress scheme, or fail to have the correct membership. In this case, the agent believed they were covered for redress by their TPO membership for Sales and Lettings, and as a result did not receive the maximum fine of £5,000. However, this should act as a timely warning to all agents to ensure you have appropriate redress membership to cover the work you carry out”.

]]>https://thenegotiator.co.uk/agent-fined-3k-after-a-tenacious-local-authority-wins-case/feed/0Purplebricks shares rally following rumours of US fund takeoverhttps://thenegotiator.co.uk/purplebricks-share-price-takeover-rumours/
https://thenegotiator.co.uk/purplebricks-share-price-takeover-rumours/#respondWed, 22 May 2019 23:03:10 +0000https://thenegotiator.co.uk/?p=54776The hybrid agency's stock rallied by 5.2% yesterday to nearly £1 a share on the back of speculation about its future.

Following our story yesterday that major US equity fund Francisco Partners may be considering a takeover of Purplebricks, the agency’s shares staged a significant rally on the London Stock Exchange rising by 5.2%.

Its shares started the day in poor shape at 90p each but rallied soon after trading started, rising at one point to nearly £1 a share before ending the day at 95p. Yesterday FT.com’s Live Market Commentary editor Bryce Elder suggested that Francisco Partners is probably not the only equity fund looking at a Purplebricks takeover or acquisition.

Purplebricks’ stock started the month well, topping out at £1.35 a share, but after the company made the shock announcement that its CEO and co-founder Michael Bruce would be leaving the company, and that its Oz operation was to close, it tanked to £1.07p.

Fund times

Despite this, as we reported last week, another City fund recently began hoovering up Purplebricks stock. Toscafund Management revealed that it had acquired nearly three million extra Purplebricks shares making it the eighth largest holder of the company’s stock with a total share of 5.64% of the hybrid estate agency.

But if the company were to be taken over, one winner would be Michael Bruce and his wife Isobel, who own 33.1 million shares in the company which, even at today’s much reduced price, would gross them a windfall of £31.32 million.

Former Capital CEO Paul Pindar, who was an early backer of Purplebricks, retains 10.8 million shares in Purplebricks with his wife, Sharon.

]]>https://thenegotiator.co.uk/purplebricks-share-price-takeover-rumours/feed/0Campaign grows to ban controversial short-let management agency’s tube adhttps://thenegotiator.co.uk/hostmaker-tube-ads/
https://thenegotiator.co.uk/hostmaker-tube-ads/#respondWed, 22 May 2019 23:01:35 +0000https://thenegotiator.co.uk/?p=54767Commuters, politicians and housing campaigners have complained to the Mayor of London about the ads, which urge landlords to ditch long-term lets.

An advertising campaign launched by a controversial Airbnb management company has prompted an MP to write to Mayor of London Sadiq Khan to remove the poster ads from the city’s Underground stations.

The Mayor of London’s office holds the levers of power at Transport for London (TfL), which runs the tube network.

Hostmaker featured in a BBC undercover documentary in February during which one of its senior managers was filmed explaining how to get around Airbnb’s 90-day renting restriction in the capital.

But Hostmaker has courted controversy again after launching a series of ads on London’s tube network urging the city’s landlords to ditch long-term renting and embrace short-term lets.

The posters have headline text that reads: “My long-term let is ticking along… terribly” and then explains “But with our dynamic mix of short and medium-term, your properties could earn you up to 30% more”.

But the campaign has not gone down well among commuters many of whom have contacted London Assembly member Tom Copley (left).

He has now written to Khan claiming that the adverts do not meet TfL’s advertising policy.

His letter, which was posted on Twitter, says: “Hostmaker has been found to be actively encouraging landlords to break the law, and is acting in contravention of Mayoral policy on short-term lettings”.

“I am therefore writing to ask you in your capacity as Chair of TfL to ask that TfL no longer accepts advertisements from Hostmaker on its estate.”

Copley also asks that TfL advertising is amended to ensure that short-term lets management companies like Hostmakermust follow Airbnb’s lead and embrace a 90-day renting limit.